2020 (5) TMI 88

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....in short 'the Act'). The assessee has raised following grounds in the appeal: 1. The Ld. CIT ( Exemption) is unjustified, illegal and wrong for passing the order u/s 12AA(1)(b)(ii) of the Income Tax Act for rejection of Application to grant registration of Society u/s 12AA of Income tax Act, 1961. 2. The findings of Ld. CIT (Exemption) that the Society is not carrying out any Charitable activities is not correct since exemption u/s 12AA can be granted on future activities. 3. The findings of Ld. CIT (Exemption) that members are pooling their professional receipts so as to get exemption and manipulate their income is not correct. 4. The claim of Ld. CIT (Exemption) that assessee has failed to answer how it....

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.... applicant has shown opening capital balance of Rs.42,50,375 as on 01/04/2016 and thereafter introduced huge capital investment of Rs. 52,00,000/- in cash. The capital has been mainly contributed by DR Luqumn Ali (President of the society) and Dr. Nisha Choudhary (Secretary of the society), who are having share of profit in the society at 50% and 20% respectively. The Learned CIT is of the view that these both individuals have pooled their individual professional receipt for their own benefit by way of the profit sharing ratio in the society. 2. The society is a commercial entity engaged in providing medical services on commercial lines and levying huge fee for the same, without any act of charity. 3. The profit motive of ....

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....society has to be seen and activities being future event, the Learned CIT is not required to examine that. In support of the contention he relied on the decision of the Hon'ble allowable High Court in the case of Hardyal charitable and educational trust vs Commissioner of income-II, (2013) 353 ITR 534 (All). 7. On the contrary, the learned DR submitted that the assessee society was constituted prior to 2009 and no activity thereafter has been shown by the assessee society in furtherance of its objects. He submitted that only activity have been shown in financial year 2015-16 and 2016-17, during which the assessee society had purchased land by way of the money contributed by the members of the society and thereafter construction by way of....

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....ere such activities have not or are in the process of its initiation. Where a trust, set up to achieve its objects of establishing educational institution, is in the process of establishing such institutions, and receives donations, the registration under Section 12AA cannot be refused, on the ground that the Trust has not yet commenced the charitable or religious activity. Any enquiry of the nature would amount to putting the cart before the horse. At this stage only the genuineness of the objects has to be tasted and not the activities, which have not commenced. The enquiry of the Commissioner of Income Tax at such preliminary stage should be restricted to genuineness of the objects and not the activities unless such activities have comme....

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....d from its establishment till the date for applying registration. In our opinion, the assessee is required to provide all details regarding Constitution of its members, funds received and utilized towards charitable activities et cetera detail since inception of the society. Since all the details have not been examined by the Learned CIT, we set aside the order of the Learned CIT with the direction to decide a fresh on verification of the objects and genuineness of the activities in accordance with the law in the light of the documents which the assessee is required to submit before him as mentioned above. The assessee shall be afforded adequate opportunity of being heard . The grounds raised by the assessee are accordingly allowed for stat....

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....स्ट एण्ड असल मन्त्री डॉक्टर | ट्रोनिका सिटी लोनी (गा. बाद) 4. डा. अनिल एस पी सक्सेना लव कुश अस्पताल करावल नगर कोषाध्यक्ष डॉक्टर सक्सेना दिल्ली ....